Case Overview: A.J. Lanzarotta Wholesale Fruits & Vegetables Ltd. (plaintiff) sought damages from United Farmers 2773125 Ontario Inc. and individual defendants Brunton and King (defendants) for fraudulent misrepresentation in obtaining food products on credit.
Court Proceedings: The case proceeded as an uncontested trial after the defendants' statement of defense was struck out. The trial focused on issues of liability, damages, and potential orders under the Bankruptcy and Insolvency Act.
Plaintiff’s Allegations: The plaintiff claimed that the defendants fraudulently obtained food products valued at approximately $1.76 million and sought damages for the fair market value of these products, along with consequential and punitive damages.
Evidence and Findings: The court considered substantial affidavit evidence, including from the plaintiff’s office manager and an accounting expert. It was found that the defendants engaged in fraudulent misrepresentation to secure credit and procure food products from the plaintiff.
Court’s Decision: The court awarded damages based on the cost of goods sold, additional consequential losses, and punitive damages against individual defendants Brunton and King. The total judgment included compensatory damages of approximately $1.34 million and punitive damages of $200,000.
Final Judgment: The court ruled in favor of the plaintiff, with the judgment to survive any bankruptcy proceedings by the defendants.
